Moody's Investors Service Suggests Legal Online Poker Possible

Published Saturday, April 30, 2011 -

Moody's Investors Service a Wall Street New York USA analyst that many investors count on for sound advise on stock market trends has issued an interesting report recently. The firm has suggested the recent Department of Justice indictments of online poker and money processing executives could be just what individual states need to legalize online poker and capitalize on the activity within their own borders.

Moody's reminded investors online gambling was not a threat to land-based casinos and it would be a long time before the individual states actually have the opportunity to legalize online poker and benefit from the revenues that could be generated.
One of the vice presidents with Moody's Investors Service, Peggy Holloway, said the government crackdown halted federal attempts to legalize Internet gambling. "However, we believe states may view this as an opportunity and step up their efforts to legalize intrastate online gambling, particularly Internet poker, on their own," Holloway concluded.
Online poker is estimated to be worth an estimated $4 billion-to-$6 billion-a-year.  The Moody's report said the casino industry looks at the online gambling as a vehicle to enhance its customer base by attracting younger gamblers.

The investment service pointed to Caesars Entertainment Corp., which operates the World Series of Poker, suggesting because of brand recognition, Caesars Entertainment Corp. "would have the upper hand." 
Caesars Entertainment has already established a partnership agreement with British online gaming company 888 on World Series of Poker Internet gaming sites in the U.K. Italy and France.
Caesars Chief Executive Officer, Gary Loveman said in a piece published by that it was his opinion that the shutdowns won't change the desire of millions of Americans to play online poker. "Instead, the question is this: Should we seize the moment to legalize online poker, permit a safe and legitimate industry in the U.S., and bring these jobs and revenues home?" Loveman said. "Unequivocally, the answer is yes."




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